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Corporate finance 1

Total questions: 10

Worksheet time: 3mins

Name
Class
Date
1.

Balance sheet ?

a)

Snapshot of the financial position of a company at a specified time,

Assets = Liabilities + Equity

b)

Snapshot of the financial position of a company at a specified time,

Asset = Liabilities + Withdraw

c)

Reporting a company's financial performance over a specific accounting period, Asset = Liabilities + Withdraw

d)

Reporting a company's financial performance over a specific accounting period, Assets = Liabilities + Equity

2.

Which is NOT a basic financial statement?

a)

Income statement

b)

Cashflow statement

c)

Statement of financial position

d)

Statement of retained earnings.

3.

How many parts the structure of an accounting standard includes

a)

3

b)

4

c)

5

d)

6

4.

What is this?

a)

Income statement

b)

Balance sheet

c)

Financial statement note

d)

Cashflow statement

5.

which is not in assets

a)

Money

b)

Printer

c)

Note payable

d)

Note receivable

6.

A 'commodities forward contract' is which of the following?

a)

A contract in which the counterparties agree to exchange a commodity at some date in the future but at a price decided now.

b)

A contract in which the counterparties agree to exchange a commodity now but at a price decided in the future.

c)

A standardized exchange traded contract.

d)

The option but not the right to buy the underlying at some point in the future.

7.

What is the value of the firm usually based on?

a)

The value of debt and equity.

b)

The value of equity.

c)

The value of debt.

d)

The value of assets plus liabilities

8.

Which of the following does not make the firm more vulnerable to financial distress?

a)

High sensitivity of the company's revenues to the general level of economic activity.

b)

High proportion of fixed to variable costs.

c)

Physical capital assets which are relatively illiquid and difficult-to-market.

d)

The tax shield.

9.

Which of the following would not be financed from working capital?

a)

Accounts receivable.

b)

Cash float.

c)

Credit sales.

d)

A new personal computer for the office.

10.

Which of the following is not a characteristic of wholesale markets?

a)

Firms deal with other firms.

b)

Lending and borrowing is coordinated through banks.

c)

Borrowing and lending is not intermediated.

d)

Very large quantities of money are at stake.